This research was aimed at exploring the Practices of Celebrating Yahoode Festival for Tourism Development in the Hadiya Zone, SNNPR. The study analyzed components of Yahoode festival practices, overall management activities and the challenges hindering it not to be used widely for tourism development. An exploratory research design and also qualitative lead mixed research approaches were employed for this study. By using purposive sampling technique of non-probability sampling, 67 quantitative data were collected from the experts of the culture and tourism bureau of the zone through questionnaire and also 17 key informants (Yahoode festival organizing committee, higher officials from the zone administration office, government communication office and higher official of culture and tourism office and elders of Hadiya) were used for obtaining qualitative data through in-depth interview. The research finding indicates the Yahoode festival has the unique socio-cultural and economic manifestations of Hadiya people. It incorporates gaabbimmaa (elders blessing), Yahoode dancing, girls and boys cultural dancing, damsel cultural wearing or clothing show event, tuutta (traditional share out association), saatte (torch) program, sharima and birima (cultural boasting), diransima (lullaby and croon) and customary gastronomic services. As the finding indicates the challenges those hinder the festival practices not to be used widely for tourism development are lack of advance planning, inadequate marketing and promotion, lack of support from higher government bodies, weak community awareness to the festival event, lack of skilled manpower in festival tourism, insufficient budget, lack of strong leadership and centralization of activities. And also an overall management practice of Yahoode festival for tourism development in the study area is almost poor. Therefore, proper management practices of planning, promotion and marketing of Yahoode festival need to be applied and all the concerned organizing entities of the Yahoode festival event are expected to improve their concern on the Yahoode festival and work in collaboration for encouraging the festival for tourism development in Hadiya zone.